| Local taxes are an even further extension of the | | | | and state level. Quite often, however, the local |
| federal income tax withholding, just on the local | | | | offices will require only an information return, as |
| level. Businesses that operate in a particular state | | | | transmittal of actual tax withholding will come |
| will generally be able to access information their | | | | from the applicable state. |
| particular locality through their state's revenue | | | | Local tax rates are even lower than those of the |
| office. Taxes withheld on the local level will not | | | | state level, and sometimes are referred to as a |
| usually require a separate form. Local government | | | | permit tax. Some cities charge a flat fee for |
| entities will generally require that you file a copy | | | | employees to come into their city and work, |
| of the state form with their local offices. | | | | especially if they reside outside the city limits or in |
| Employers will generally file W-2 information and | | | | another city altogether. |
| the information return accompanying W-2's with | | | | Small businesses can refer to their individual |
| the IRS, the applicable state agency, and then | | | | states' Department of Revenue, Department of |
| with each necessary local level. Actual tax | | | | Industrial Relations, Employment offices, or Small |
| deposits are generally made on the state level, | | | | Business Administration for direction and |
| and each state revenue office will transmit local | | | | assistance in complying with all state and local |
| taxes to the proper tax office. There is no social | | | | laws. Additional information may be obtained thru |
| security or Medicare tax withheld at this level and | | | | the IRS website at . There are numerous |
| usually there are no unemployment taxes withheld | | | | publications that provide direction and instructions |
| at the local level. Businesses are liable for | | | | for small businesses such as IRS Publication 15, |
| withholding and reporting of the wages earned by | | | | Circular E Employers Tax Guide, and links to |
| each employee, and the timely filing of such | | | | individual state and local websites. |
| withholding and reporting just as at the federal | | | | |